1031 Exchange

SOLVED

Good morning, 

Has anyone done a 1031 Exchange disposal in sage? Just want to confirm if I should select Taxable Exchange as the disposal method. 

Thanks, 

  • 0
    verified answer

    Hello Juan,

    Frist, I am not an accountant.

    It is my understanding that a 1031 exchange is an exchange of similar properties where a Taxable Exchange is an exchange of dissimilar property.

    So that, if this is a 1031 exchange it would be a Like-Kind Exchange, not a Taxable Exchange.

    ~Delray

  • 0

    What did you classify the 1031 exchange account as while the funds were in this account?  I need to figure out how to do a 1031 exchange in Sage...I contacted Sage and was told that it sounds like I need to do a general journal entry - but no other assistance was given!!

  • 0 in reply to Tracy Keller
    SUGGESTED

    Hello Tracy,

    The 1031 exchange (Like-kind exchange) pre-2018, I understood very well, but since then, not so much.

    The problem here is that the rule changes since 2018 have been a bit muddled, unclear, and have changed a few more times.

    I have had to do a bit of research (which means I had to bug an accountant), and it appears that the post 2017 rules would be that exchanges of personal property which qualified as like-kind exchanges prior to 2018 are treated as taxable exchanges in 2018 and later.

    It now appears Property Types P, A, T, and Q which for the 1031 exchange once used the Disposal Method of Like-kind exchange are now to use the Disposal Method of Taxable Exchange.

    ~Delray